ICE Reports Uptick in Q3 Revenues Despite Market Uncertainty

(ICE), a global network of exchanges and clearinghouses, announced its third quarter results for 2018 today. Despite uncertain market conditions, the company still managed to see an uptick in revenue – marking the 22nd consecutive quarter of year-over-year revenue growth.
In the third quarter, which ended on September 30, 2018, ICE achieved a consolidated revenue of $1.2 billion. This figure is comprised of data and listings revenue and trading and clearing revenue, representing an overall increase of 5 per cent year-on-year.

Revenue for ICE’s data and listing segment was $642 million in the third quarter. This is up – but not by much – on an annual basis, climbing by 3 per cent from last year’s revenue of $623 million.
For the trading and clearing segment, revenue came in at $558 million. When compared to the , which experienced a revenue of $523 million, this is an increase of 3 per cent.

Jeffrey Sprecher
Source: Intercontinental Exchange
Commenting on the results, ICE Chairman & Chief Executive Officer, Jeffrey Sprecher said: “our third quarter performance reflected strength across our futures, cash equities, listings and data services businesses, marking the 22nd consecutive quarter of year-over-year revenue growth.
“Against an uncertain regulatory and political backdrop, we are focused on driving innovation, delivering growth and helping to serve our customers’ risk management needs.”
Breaking down trading and clearing revenue for ICE
In the third quarter of 2018, energy futures and options revenue were flat on a yearly basis. The rate per contract (RPC) was up by 7 per cent year-on-year but this was offset by a fall in average daily volume (ADV) of 6 per cent.
Ags and metals futures and options revenue during the quarter was up, jumping by 17 per cent when compared to the same quarter of 2017. This uptick was largely driven by a 16 per cent increase in ADV and a 1 per cent increase in RPC.
Revenue for US cash equities and equity options also experienced a small boost, increasing by 8 per cent year-on-year. This was largely thanks to a 31 per cent increase in the ADV of equity options, as well as a 7 per cent jump in the ADV of US cash equities.
Over-the-counter (OTC) and other transaction revenues were up by 40 per cent in the third quarter of 2018. According to the statement, this was due to a 7 per cent increase in CDS clearing revenue and the addition of BondPoint and .
Scott Hill
Source: Intercontinental Exchange
Scott Hill, ICE Chief Financial Officer, added: “through the end of the third quarter, we have grown revenues and earnings, generated record operating cash flows and returned nearly $1.5 billion dollars to stockholders – more than any full year in our history. As we approach the end of 2018, we remain focused on our growth initiatives and value creation.”

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